“The negative rating watch reflects heightened political partisanship that is hampering the decision to raise or suspend the debt ceiling, despite the rapid approach of the X date,” the agency said in a statement, quoted by FoxNews.
According to Fitch, the United States hit the $31.4 trillion debt ceiling on January 19, 2023, when the US Treasury, under the leadership of Janet Yellen, began efforts to avoid breaching the ceiling. debt. The measures could be fully exhausted by June 1, and as of May 23, the Treasury’s cash balance was $76.5 billion.
It should be noted that Moody’s and S&P, two other rating agencies, put the United States under surveillance during the negotiations on the debt ceiling in 2011. If S&P downgraded, Moody’s did not.
The news comes after the Biden administration and Republican leaders in the House of Representatives failed to reach an agreement to raise or suspend the debt ceiling.
In the meantime
According to NBC News, all 213 members of the Democratic minority in the House of Representatives have signed a petition to force a vote on the debt ceiling. Democrats will still need at least five Republican votes in Congress to bypass President McCarthy and pass legislation to avoid a default. So far, not a single Republican has agreed to support the Democrats.
Read the Latest Science and Technology News Today on The Eastern Herald.
